Fannie Mae has announced that it is no longer releasing Desktop Underwriter (DU) Version 10.0 during the weekend of June 25. The delay is due to issues it experienced when testing the new version. As a result, the implementation of trended credit data is being delayed as well.
The nature of the issues that Fannie Mae experienced while testing was not made clear.
The tagline for the new version is “Expanding Access to Credit and Sustainable Homeownership with More Certainty and Simplicity.”
Desktop Underwriter 10.0 Delayed
The new DU version and the associated use of trended credit data will become active during a weekend yet to be determined by Fannie Mae. However, Fannie is assuring lenders they will have ample time to prepare.
Trended Credit Data Impacts Conventional Loans Only
The DU Version 10.0 updates only impact conventional loans, not FHA or VA loans underwritten through DU for Government Loans. Lenders will not see the updated guidelines or messages on their FHA or VA loan case files.
For loan case files underwritten through DU, lenders are not expected to analyze the trended data. For manually underwritten loans or loans underwritten outside of DU, lenders do not need to analyze trended data or consider it in the underwriting and eligibility criteria.
This is what’s happening as a result:
- Credit reports will not experience a price increase on July 1 since the new trended credit data reports will not be ready at that time.
- Trended credit data will be available, at no charge, while Fannie Mae continues to test their new release. However, these reports CANNOT be used to make lending decisions.
- As soon as Fannie is confident its new Desktop Underwriter is secure and reliable, trended credit reports will be required.